Your potential business finance solutions...

Asset-based finance

A collective term used to describe invoice finance (IF), and asset-based lending (ABL). Invoice finance includes factoring, invoice discounting and supply chain finance.

Asset-based lending is provided on a similar basis to invoice finance, with funding extended against debts.

Factoring is used by smaller SME businesses to support cash flow by generating money against unpaid invoices.

Invoice discounting is similar to factoring, but can be more appealing to larger businesses.

Supply chain finance, sometimes called reverse factoring, is where smaller suppliers can take advantage of the credit strength of larger customers.

Debt option

Business bank loan

A business bank loan works in the same way as a personal loan, but is specifically intended for business purposes.

Traditionally businesses have looked first to their own bank for a loan, but there are now many providers.

Loans are better suited to larger longer-term purchases, such as investment in plant, technology or transport.

Debt option

Corporate venture capital

Corporate venture capital describes a wide variety of equity investment from a corporation, or its investment entity.

Support aimed at high-growth and high-potential, privately-held businesses.

CVCs are large corporations that set aside a certain amount of cash to invest in start-ups and scale-ups.

Financial investments are made in return for an equity stake in the business.

It is important that the investor's aims are aligned with the business.

Equity option

Export or trade finance

There are a number of finance options to support the purchase of goods and to mitigate risks of producing good for export.

Both export and trade finance can include other types of finance – in particular, asset-based finance techniques,

Export finance helps businesses sell goods and services overseas, typically by providing advance or guaranteed payment.

Export finance tools include bonds, guarantees and letters of credits

Trade finance is support that helps companies to trade either domestically or internationally.

Debt option

Growth finance

Growth finance refers to capital loans and mezzanine finance, debt finance options most appropriate for financing high-growth businesses.

Growth finance is available to relatively mature businesses.

Options can be tailored to the specific risks in the business.

Capital loans are a private equity investment for companies looking to finance change without a change of control or ownership.

Mezzanine financing is a hybrid of debt and equity financing that gives the lender the rights to convert to an ownership or equity interest.

Debt option

IPO/Public offering

An initial public offering, or IPO, is the first sale of stock issued by a company to the public.

The sale of shares in a company to institutional, larger investors and the general public.

Going public requires transparency of financial information.

Can generate significant finance to support business growth or to pay back early investors.

An opportunity for a company to critically examine itself.

Equity option

Peer-to-peer lending

One of the major innovations in business finance where online platforms match lenders with borrowers.

A direct alternative to a bank loan.

Aims to provide business owners with affordable loans, agreed relatively quickly.

Investors are likely to be primarily private individuals.

Loans can range from a few thousand pounds up to several million.

Debt option

Private equity

Provides medium to long-term investments in established companies with high-growth potential looking to make significant changes.

An option for companies that are planning to make significant changes to scale the business.

In exchange for finance private equity firms take a large stake, often a controlling stake, in the business.

Investors aim to improve the profitability through operational improvements.

Private equity firms will typically introduce corporate disciplines and a management structure.

Equity option